Caledonia Mining's Blanket Mine: Record Production and Strategic Investments for 2025

In 2024, Caledonia Mining Corporation Plc's Blanket Mine demonstrated consistent operations and strong performance, meeting production guidance and setting records for tonnes milled and hoisted. The mine produced 76,656 ounces of gold, slightly exceeding the 2023 production of 75,416 ounces and meeting the guidance range of 74,000 to 78,000 ounces. The mine also achieved a new record for tonnes milled (797,000 tonnes) and hoisted (89,727 tonnes in December), demonstrating the success of the company's strategic investments and operational efficiency.

The company's significant investment in Blanket over the past seven years, including the completion of the Central Shaft, has nearly doubled production and extended the mine's life to 2034 based on reserves. The 2025 capital expenditure programme totals $41.8 million, with $34.9 million allocated to Blanket and $5.8 million at Bilboes and Motapa. These investments aim to modernise operations, improve mining efficiency, and enhance Blanket's operating resilience and efficiency.

Key projects in the 2025 capital expenditure programme include:

1. Blanket development: $6.6 million to carry out planned development of 4,663 meters, including an additional 590 meters to improve flexibility and access higher grade areas.
2. Efficiency improvements: $3.4 million for energy-saving initiatives at Blanket.
3. Operational resilience: $4.8 million to complete the tailings storage facility and $0.7 million for IT upgrades.
4. Exploration and project development: $5.8 million towards exploration at Motapa, building on promising 2024 results, and to complete the feasibility study at Bilboes.

The 2025 production guidance for Blanket is 73,500 to 77,500 oz, reflecting the current mine scheduling, which anticipates that Blanket will continue to mine lower-grade areas. The on-mine cost is forecast at $1,050/oz to $1,150/oz, and the all-in sustaining cost ("AISC") is expected to be in the range of $1,690/oz to $1,790/oz. The increased expenditure in labour, HR, IT, and sustaining capital expenditure is part of the ongoing modernisation of the business, building a foundation for the extended operating life at Blanket, growth arising from Bilboes and Motapa, and future profitability.

Caledonia Mining's Blanket Mine has demonstrated consistent performance and strategic investments, positioning the company for continued success in 2025 and beyond. The company's focus on modernising operations, improving efficiency, and enhancing resilience will help it maintain its competitive edge in the gold mining industry.